Bill Text: TX HB3954 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to motor fuel taxes applicable to gasoline and diesel fuel within the bulk transfer system.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-02 - Effective on 9/1/19 [HB3954 Detail]
Download: Texas-2019-HB3954-Enrolled.html
H.B. No. 3954 |
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relating to motor fuel taxes applicable to gasoline and diesel fuel | ||
within the bulk transfer system. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 162.001, Tax Code, is amended by | ||
amending Subdivisions (11), (12), and (57) and adding Subdivisions | ||
(40-b) and (42-a) to read as follows: | ||
(11) "Bulk transfer" means a transfer of motor fuel | ||
from one location to another within the United States by pipeline or | ||
marine movement within a bulk transfer/terminal system, including: | ||
(A) a marine vessel movement of motor fuel owned | ||
by a licensed supplier or permissive supplier [ |
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(B) a pipeline movement of motor fuel from a | ||
refinery, motor fuel storage facility, or terminal to a terminal or | ||
motor fuel storage facility; | ||
(C) a book transfer or in-tank transfer of motor | ||
fuel within a terminal or motor fuel storage facility between | ||
licensed suppliers before completion of removal across the rack; | ||
and | ||
(D) a two-party exchange between licensed | ||
suppliers or between licensed suppliers and permissive suppliers. | ||
(12) "Bulk transfer/terminal system" means the motor | ||
fuel distribution system consisting of refineries, pipelines, | ||
marine vessels, motor fuel storage facilities, and IRS-approved | ||
terminals. Motor fuel is in the bulk transfer/terminal system if | ||
the motor fuel is in a refinery, a pipeline, a motor fuel storage | ||
facility, a terminal, or a marine vessel transporting motor fuel | ||
owned by a licensed supplier or permissive supplier [ |
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system if the motor fuel is in [ |
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(A) a bulk plant that is not part of a refinery or | ||
terminal; | ||
(B) the motor fuel supply tank of an engine or a | ||
motor vehicle; or | ||
(C) [ |
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other equipment suitable for ground transportation. | ||
(40-b) "Marine vessel" includes a marine barge. | ||
(42-a) "Motor fuel storage facility" means a storage | ||
facility supplied by pipeline or marine vessel that does not have a | ||
rack for removal of motor fuel by truck, railcar, or any other means | ||
of conveyance that is outside the bulk transfer/terminal system. | ||
(57) "Supplier" means a person that: | ||
(A) is subject to the general taxing jurisdiction | ||
of this state; | ||
(B) is registered under Section 4101, Internal | ||
Revenue Code, for transactions in motor fuel in the bulk | ||
transfer/terminal distribution system, and is: | ||
(i) a position holder in motor fuel in a | ||
terminal or refinery in this state and may concurrently also be a | ||
position holder in motor fuel in another state; [ |
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(ii) a person who receives motor fuel in | ||
this state under a two-party exchange; or | ||
(iii) a person who owns motor fuel in a | ||
marine vessel in this state; and | ||
(C) may also be a terminal operator, provided | ||
that a terminal operator is not considered to also be a "supplier" | ||
based solely on the fact that the terminal operator handles motor | ||
fuel consigned to it within a terminal. | ||
SECTION 2. Section 162.101, Tax Code, is amended by | ||
amending Subsection (e-1) and adding Subsection (e-3) to read as | ||
follows: | ||
(e-1) A tax is imposed on gasoline that is otherwise exempt | ||
from taxation under Section 162.104(a)(4) or (7) if the gasoline is | ||
sold into a truck or railcar in this state to a person who does not | ||
hold a license under Section 162.105(1), (2), (3), (4), or (6). The | ||
person who [ |
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and remit the tax. | ||
(e-3) A tax is imposed on gasoline that is otherwise exempt | ||
from taxation under Section 162.104(a)(7) if the gasoline is sold | ||
into a marine vessel in this state to a person who does not hold a | ||
license under Section 162.105(1), (2), (3), (4), or (6) unless the | ||
exporter of record is licensed under Section 162.105(1), (2), (3), | ||
(4), or (6). The person who sold the gasoline is liable for and | ||
shall collect and remit the tax. | ||
SECTION 3. Section 162.104(a), Tax Code, is amended to read | ||
as follows: | ||
(a) The tax imposed by this subchapter does not apply to | ||
gasoline: | ||
(1) sold to the United States for its exclusive use, | ||
provided that the exemption does not apply with respect to fuel sold | ||
or delivered to a person operating under a contract with the United | ||
States; | ||
(2) sold to a public school district in this state for | ||
the district's exclusive use; | ||
(3) sold to a commercial transportation company or a | ||
metropolitan rapid transit authority operating under Chapter 451, | ||
Transportation Code, that provides public school transportation | ||
services to a school district under Section 34.008, Education Code, | ||
and that uses the gasoline only to provide those services; | ||
(4) exported by either a licensed supplier or a | ||
licensed exporter from this state to any other state, provided that | ||
the bill of lading indicates the destination state and the supplier | ||
collects the destination state tax; | ||
(5) moved by truck or railcar between licensed | ||
suppliers or licensed permissive suppliers and in which the | ||
gasoline removed from the first terminal comes to rest in the second | ||
terminal, provided that the removal from the second terminal rack | ||
is subject to the tax imposed by this subchapter; | ||
(6) delivered or sold into a storage facility of a | ||
licensed aviation fuel dealer from which gasoline will be delivered | ||
solely into the fuel supply tanks of aircraft or aircraft servicing | ||
equipment, or sold from one licensed aviation fuel dealer to | ||
another licensed aviation fuel dealer who will deliver the aviation | ||
fuel exclusively into the fuel supply tanks of aircraft or aircraft | ||
servicing equipment; | ||
(7) exported to a foreign country if the bill of lading | ||
or shipping documents indicate [ |
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and the fuel is actually exported to the foreign country; | ||
(8) sold to a volunteer fire department in this state | ||
for the department's exclusive use; or | ||
(9) sold to a nonprofit entity that is organized for | ||
the sole purpose of and engages exclusively in providing emergency | ||
medical services and that uses the gasoline exclusively to provide | ||
emergency medical services, including rescue and ambulance | ||
services. | ||
SECTION 4. Section 162.201, Tax Code, is amended by | ||
amending Subsection (e-1) and adding Subsection (e-3) to read as | ||
follows: | ||
(e-1) A tax is imposed on diesel fuel that is otherwise | ||
exempt from taxation under Section 162.204(a)(4) or (7) if the | ||
diesel fuel is sold into a truck or railcar in this state to a person | ||
who does not hold a license under Section 162.205(a)(1), (2), (3), | ||
(4), or (6). The person who [ |
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for and shall collect and remit the tax. | ||
(e-3) A tax is imposed on diesel fuel that is otherwise | ||
exempt from taxation under Section 162.204(a)(7) if the diesel fuel | ||
is sold into a marine vessel in this state to a person who does not | ||
hold a license under Section 162.205(a)(1), (2), (3), (4), or (6), | ||
unless the exporter of record is licensed under Section | ||
162.205(a)(1), (2), (3), (4), or (6). The person who sold the diesel | ||
fuel is liable for and shall collect and remit the tax. | ||
SECTION 5. Section 162.204(a), Tax Code, is amended to read | ||
as follows: | ||
(a) The tax imposed by this subchapter does not apply to: | ||
(1) diesel fuel sold to the United States for its | ||
exclusive use, provided that the exemption does not apply to diesel | ||
fuel sold or delivered to a person operating under a contract with | ||
the United States; | ||
(2) diesel fuel sold to a public school district in | ||
this state for the district's exclusive use; | ||
(3) diesel fuel sold to a commercial transportation | ||
company or a metropolitan rapid transit authority operating under | ||
Chapter 451, Transportation Code, that provides public school | ||
transportation services to a school district under Section 34.008, | ||
Education Code, and that uses the diesel fuel only to provide those | ||
services; | ||
(4) diesel fuel exported by either a licensed supplier | ||
or a licensed exporter from this state to any other state, provided | ||
that the bill of lading indicates the destination state and the | ||
supplier collects the destination state tax; | ||
(5) diesel fuel moved by truck or railcar between | ||
licensed suppliers or licensed permissive suppliers and in which | ||
the diesel fuel removed from the first terminal comes to rest in the | ||
second terminal, provided that the removal from the second terminal | ||
rack is subject to the tax imposed by this subchapter; | ||
(6) diesel fuel delivered or sold into a storage | ||
facility of a licensed aviation fuel dealer from which the diesel | ||
fuel will be delivered solely into the fuel supply tanks of aircraft | ||
or aircraft servicing equipment, or sold from one licensed aviation | ||
fuel dealer to another licensed aviation fuel dealer who will | ||
deliver the diesel fuel exclusively into the fuel supply tanks of | ||
aircraft or aircraft servicing equipment; | ||
(7) diesel fuel exported to a foreign country if the | ||
bill of lading or shipping documents indicate [ |
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foreign destination and the fuel is actually exported to the | ||
foreign country; | ||
(8) dyed diesel fuel sold or delivered by a supplier to | ||
another supplier and dyed diesel fuel sold or delivered by a | ||
supplier or distributor into the bulk storage facility of a dyed | ||
diesel fuel bonded user or to a purchaser who provides a signed | ||
statement as provided by Section 162.206; | ||
(9) the volume of water, fuel ethanol, renewable | ||
diesel, biodiesel, or mixtures thereof that are blended together | ||
with taxable diesel fuel when the finished product sold or used is | ||
clearly identified on the retail pump, storage tank, and sales | ||
invoice as a combination of diesel fuel and water, fuel ethanol, | ||
renewable diesel, biodiesel, or mixtures thereof; | ||
(10) dyed diesel fuel sold by a supplier or permissive | ||
supplier to a distributor, or by a distributor to another | ||
distributor; | ||
(11) dyed diesel fuel delivered by a license holder | ||
into the fuel supply tanks of railway engines, motorboats, or | ||
refrigeration units or other stationary equipment powered by a | ||
separate motor from a separate fuel supply tank; | ||
(12) dyed kerosene when delivered by a supplier, | ||
distributor, or importer into a storage facility at a retail | ||
business from which all deliveries are exclusively for heating, | ||
cooking, lighting, or similar nonhighway use; | ||
(13) diesel fuel used by a person, other than a | ||
political subdivision, who owns, controls, operates, or manages a | ||
commercial motor vehicle as defined by Section 548.001, | ||
Transportation Code, if the fuel: | ||
(A) is delivered exclusively into the fuel supply | ||
tank of the commercial motor vehicle; and | ||
(B) is used exclusively to transport passengers | ||
for compensation or hire between points in this state on a fixed | ||
route or schedule; | ||
(14) diesel fuel sold to a volunteer fire department | ||
in this state for the department's exclusive use; or | ||
(15) diesel fuel sold to a nonprofit entity that is | ||
organized for the sole purpose of and engages exclusively in | ||
providing emergency medical services and that uses the diesel fuel | ||
exclusively to provide emergency medical services, including | ||
rescue and ambulance services. | ||
SECTION 6. The changes in law made by this Act do not affect | ||
tax liability accruing before the effective date of this Act. That | ||
liability continues in effect as if this Act had not been enacted, | ||
and the former law is continued in effect for the collection of | ||
taxes due and for civil and criminal enforcement of the liability | ||
for those taxes. | ||
SECTION 7. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 3954 was passed by the House on April | ||
18, 2019, by the following vote: Yeas 133, Nays 2, 1 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 3954 was passed by the Senate on May | ||
15, 2019, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |